Pre-offer Appraisals

[Eli]

that's not even a complete sentence. only someone as intelligent as you would think that the entity ordering the appraisal should be anyone other than the party who is lending the funds secured by the property.

Again, I reference mortgage fraud and who instigated it and I have referenced FHA and VA who are also clients. HUD does more than even FHA. They do multifamily too.

 

[Deleted member 134708]

And why would anyone be offering to do appraisals for only $100??

Income.

At $100 will have 25% takers. At $400 will have 0% takers.

 

[bnmappraisal]

Income.

At $100 will have 25% takers. At $400 will have 0% takers.

And that's why I love her signature line:

"4 @ $200 is not the same as 2 @ $400"

It's way too true!

 

[Deleted member 134708]

And that's why I love her signature line:

"4 @ $200 is not the same as 2 @ $400"

It's way too true!

Problem with the tag line, it doesn't no live in reality. It's an amazing tagline for textbooks. Fictional ones.

In reality, people gotta eat, and usually the more volume appraisers eat a lot more than the holdouts like me up at $400 minimum.

I've received $0 of my $400 pre-listing product. The OP has received $10k. Who eats more in reality?

I'm the smart one in textbooks. Reason why? Textbooks get food brought to them.

 

[Deleted member 130081]

And why would anyone be offering to do appraisals for only $100??

Desktop verbal.

 

[Deleted member 130081]

So, the reason I offer a $100 appraisal option is to offer an affordable option. One of the largest challenges of selling the Pre-Offer Appraisal is of course that the buyer already knows they will be forking out money down the line too. But here's some counter-thoughts - Once the first appraisal is purchased, the likelihood of the mortgage appraisal not coming in at the purchase price is much less. Also, the likelihood the buyer would pay the loan origination fee is less too, which is another cost out the window sometimes.

I have found that after I offer cost options, most people go with the most expensive anyways. Once the reason they need to do this sinks in, a couple hundred bucks is well spent in the consumer eyes. This is why we need to educate the public on why they should do it. The rest will follow.

 

[bnmappraisal]

Problem with the tag line, it doesn't no live in reality. It's an amazing tagline for textbooks. Fictional ones.

In reality, people gotta eat, and usually the more volume appraisers eat a lot more than the holdouts like me up at $400 minimum.

I've received $0 of my $400 pre-listing product. The OP has received $10k. Who eats more in reality?

I'm the smart one in textbooks. Reason why? Textbooks get food brought to them.

I agree that people gotta eat, myself and family included. I have no problem with people (appraisers included) doing what they have to do. I've been there, done that. I did the "volume guarantee? thing for a while - lower fees for volume. The pitch from their sales person (ACT Appraisal btw) was "you'll make money, we'll make money" ... And we did! I had never made that much leading up to that point in my career (I had literally just opened up my own firm)

(my bold) My counter to this is that in our industry (appraising) the "food" (assignments/fees) brought are many times from AMCs who many times are looking out for "you'll make money, we'll make money" Again, there's nothing wrong with that and there seems to be many appraisers out there who don't want to deal with the day to day of running a business (i.e. scheduling, finding clients, etc) and are fine with the (ACT) "volume guarantees" or even as Servicelink offers their "Exos" app which "takes care" of the scheduling for their appraisers.

I would also counter your comment that the volume appraisers eat a lot more than the holdouts. There are clients out there paying better/higher fees; I've found them. It does take some "blood, sweat, tears" (or in my case, making good contacts with industry/market participants). I've found my income to remain about the same, even looking to tick up a bit this year, and I'm able to have less stress and work less hours. (and yes, I'm a 1 man shop and can set my own schedule)

 

[JTip]

I'd rather cut grass for $100.

 

[Deleted member 130081]

I agree that people gotta eat, myself and family included. I have no problem with people (appraisers included) doing what they have to do. I've been there, done that. I did the "volume guarantee? thing for a while - lower fees for volume. The pitch from their sales person (ACT Appraisal btw) was "you'll make money, we'll make money" ... And we did! I had never made that much leading up to that point in my career (I had literally just opened up my own firm)

(my bold) My counter to this is that in our industry (appraising) the "food" (assignments/fees) brought are many times from AMCs who many times are looking out for "you'll make money, we'll make money" Again, there's nothing wrong with that and there seems to be many appraisers out there who don't want to deal with the day to day of running a business (i.e. scheduling, finding clients, etc) and are fine with the (ACT) "volume guarantees" or even as Servicelink offers their "Exos" app which "takes care" of the scheduling for their appraisers.

I would also counter your comment that the volume appraisers eat a lot more than the holdouts. There are clients out there paying better/higher fees; I've found them. It does take some "blood, sweat, tears" (or in my case, making good contacts with industry/market participants). I've found my income to remain about the same, even looking to tick up a bit this year, and I'm able to have less stress and work less hours. (and yes, I'm a 1 man shop and can set my own schedule)

So, this thread is not about doing cheap appraisals. Its about creating/expanding a market for appraisals. I get $350 for most of the Pre-Offer Appraisals I do, even after I offer the client the $100 and $225 options too. I get paid more per hour on each one, including the $100 option, than I do for mortgage work, with zero BS to contend with.

 

[Deleted member 130081]

"If people did know this stuff, we might be able to curb or even eliminate the real estate boom/bust cycle."

Your heart is in the right place but as long as the Contract Price Bull$eye lives...........any attempt to change the collusive current system is doomed.

I am not suggesting changing anything on the mortgage side. I am suggesting that there is an enormous untapped market out there for the taking. Once people understand what you just said and then also understand how much money that might cost them, they will gladly pay for an appraisal before they make an offer, despite knowing they will pay for another one with the mortgage. If you think that through, it makes sense. How much will it cost a buyer/borrower in time and money if an appraisal doesn't hit that bullseye? Appraisal fee? Home Inspection Fee? Loan origination fee? Time that could have been spent making offers on homes now already sold? There are a lot of good reasons for a buyer to get an appraisal before they write an offer. We need to educate them on the reason of insanity, and all the other reasons will be bonus. You're an appraiser, would you write an offer blind and wait to see what the bank said?